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What’s the best strategy for collecting and using credit card rewards?

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Mark Schwartz
Mark Schwartz
7 months ago

My wife and I use Capital One Venture for points and use them to pay for flights to Europe and vacation expenses. Just about every month expense is put on the Capital one card and for most charges we get 2 points for every $1, spent. We average about $4,500 in charges per month so we average 9000 points per month. Flight to the Netherlands is $650 right now so that’s 65,000 points so about 7 months of monthly charges.

Randy Starks
Randy Starks
7 months ago

I use the Costco Citi card for restaurants, gasoline, Costco, and some travel-hotels, etc. Have Quicksilver to get 1 1/2% on everything and now the United Chase Card for mileage points for airline tickets, which will come in handy once COVID goes endemic. I use my Quicksilver dollars to pay for Amazon items mostly.

tshort
tshort
7 months ago

I use the Visa Signature cash rewards card from Alliant Credit Union. No annual fee and 2.5% cash back on up to $10k in purchases per month. Last year’s spending netted me a $1600 credit which I took in January of this year. Strategy: find a rewards card with no fee; that works on all purchases; use it for everything; pay off the bill entirely every month; collect the rewards once a year.

Cyndy Yonkman
Cyndy Yonkman
7 months ago

MOST IMPORTANTLY you MUST pay card in FULL monthly. They are NOT rewards if you pay interest! Use whatever card you get best rewards on and save them up for big things. We use ours for vacation but as cash back against the bill. If we take and trip and add an expensive outing I charge it to my card and the take that amount in points and use them to pay the bill. Works great for us!

Lehman Brown
Lehman Brown
7 months ago

I use a Citi card. 2 percent back on purchases. I let it build up then use for Christmas. Transfer cash to checking account. This is tax free money!

Bob Drake
Bob Drake
7 months ago

Carry four: AMEX Blue preferred for groceries(6%), Chase Biz for dining, office and home supply stores(3%), BJs for BJs instore(3%) and gas(add’l $0.10/gal – eliminates need to carry the membership card), Fidelity Elan for other(2%).
Do not carry but use: Amazon card for Amazon online only(5%), an airline card of the moment to get sign up bonus miles, use for upcoming trip – cancel and repeat. Couple of legacy bonus cards, no longer rewarding competitively but keep in the drawer and use once a year to keep active and keep my ave card age high for FICO.
Take whichever of the above for international travel that don’t charge currency conversion adders(only time Amazon Prime may be carried).

Jackie
Jackie
1 year ago

I try to keep it simple with 2 cards: An Amazon visa that gives me 5% back on Amazon purchases (which for me is a lot of money on an annual basis) and a Citicard that gives me 2% on everything else. I prefer cash back to “points” because I can use it for anything with no effort. But I am considering a United card that will give me 70,000 bonus miles in anticipation of a big vacation in the next year.

Sanjib Saha
Sanjib Saha
1 year ago

I prefer using a smaller number of zero-fee cards that return cash rewards. I use Costco Citi for gas, Costco purchases, travel and dining; an Amazon Chase Card for Amazon and Whole Foods purchases; and Fidelity Elan for everything else.

kristinehayes2014
kristinehayes2014
1 year ago

For myself, the best strategy is to just hold one ‘all purpose’ rewards card and pay it off every month. I use a Costco Citi card to pay for nearly all of my monthly expenses. I typically get a $250-$300 cash reward in February of each year.

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